97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6240

 

Introduced , by Rep. Esther Golar

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.826 new
30 ILCS 330/2  from Ch. 127, par. 652
30 ILCS 330/7.6 new
30 ILCS 330/12  from Ch. 127, par. 662

    Amends the General Obligation Bond Act. Provides that an additional $4,000,000,000 in general obligation bonds is authorized to be issued and used for the purpose of making payments to bona fide creditors of the State who: (1) have submitted a bill or invoice to the State that (A) was properly approved under rules adopted under Section 3-3 of the State Prompt Payment Act prior to September 1, 2012 and (B) was not paid within 30 days after the bill or invoice was submitted to the State Comptroller; or (2) are entitled to payment from State funds if the State is more than 60 days delinquent in the payment of those funds as of September 1, 2012. Provides that the proceeds of the additional bonds shall be deposited into the State Fiscal Responsibility Fund, a special fund created in the State Treasury. Provides that the Fund is not subject to sweeps, administrative charges, or chargebacks. Amends the State Finance Act to create the Fund. Provides that proceeds from the bond sale may not be used to make contributions to pension systems. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
STATE DEBT IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6240LRB097 23326 HLH 72162 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.826 as follows:
 
6    (30 ILCS 105/5.826 new)
7    Sec. 5.826. The State Fiscal Responsibility Fund.
 
8    Section 10. The General Obligation Bond Act is amended by
9changing Sections 2 and 12 and by adding Section 7.6 as
10follows:
 
11    (30 ILCS 330/2)  (from Ch. 127, par. 652)
12    Sec. 2. Authorization for Bonds. The State of Illinois is
13authorized to issue, sell and provide for the retirement of
14General Obligation Bonds of the State of Illinois for the
15categories and specific purposes expressed in Sections 2
16through 8 of this Act, in the total amount of $51,092,925,743
17$47,092,925,743 $45,476,125,743.
18    The bonds authorized in this Section 2 and in Section 16 of
19this Act are herein called "Bonds".
20    Of the total amount of Bonds authorized in this Act, up to
21$2,200,000,000 in aggregate original principal amount may be

 

 

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1issued and sold in accordance with the Baccalaureate Savings
2Act in the form of General Obligation College Savings Bonds.
3    Of the total amount of Bonds authorized in this Act, up to
4$300,000,000 in aggregate original principal amount may be
5issued and sold in accordance with the Retirement Savings Act
6in the form of General Obligation Retirement Savings Bonds.
7    Of the total amount of Bonds authorized in this Act, the
8additional $10,000,000,000 authorized by Public Act 93-2, the
9$3,466,000,000 authorized by Public Act 96-43, and the
10$4,096,348,300 authorized by Public Act 96-1497 shall be used
11solely as provided in Section 7.2.
12    The issuance and sale of Bonds pursuant to the General
13Obligation Bond Act is an economical and efficient method of
14financing the long-term capital needs of the State. This Act
15will permit the issuance of a multi-purpose General Obligation
16Bond with uniform terms and features. This will not only lower
17the cost of registration but also reduce the overall cost of
18issuing debt by improving the marketability of Illinois General
19Obligation Bonds.
20(Source: P.A. 96-5, eff. 4-3-09; 96-36, eff. 7-13-09; 96-43,
21eff. 7-15-09; 96-885, eff. 3-11-10; 96-1000, eff. 7-2-10;
2296-1497, eff. 1-14-11; 96-1554, eff. 3-18-11; 97-333, eff.
238-12-11; 97-771, eff. 7-10-12; 97-813, eff. 7-13-12; revised
247-23-12.)
 
25    (30 ILCS 330/7.6 new)

 

 

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1    Sec. 7.6. Payments to bona fide creditors.
2    (a) The amount of $4,000,000,000 is authorized to be used
3for the purpose of making payments to bona fide creditors of
4the State who: (1) have submitted a bill or invoice to the
5State that (A) was properly approved under rules adopted under
6Section 3-3 of the State Prompt Payment Act prior to September
71, 2012, and (B) was not paid within 30 days after the bill or
8invoice was submitted to the State Comptroller; or (2) are
9entitled to payment from State funds if the State is more than
1030 days delinquent in the payment of those funds as of
11September 1, 2012. For the purposes of this Section, the term
12"bona fide creditor" includes, but is not limited to,
13healthcare providers, public and private universities, school
14districts, units of local government, and State vendors. The
15proceeds of the additional $4,000,000,000 of bonds authorized
16by this amendatory Act of the 97th General Assembly shall not
17be used to pay contributions to any pension or retirement
18system of the State, any unit of local government or school
19district, or any agency or instrumentality thereof.
20    (b) The proceeds of the additional $4,000,000,000 of bonds
21authorized by this amendatory Act of the 97th General Assembly,
22less the amounts directly paid out for bond sale expenses under
23Section 8, shall be deposited into the State Fiscal
24Responsibility Fund, a special fund created in the State
25Treasury. Moneys in the State Fiscal Responsibility Fund shall
26be used to make payments to bona fide creditors of the State,

 

 

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1as defined in subsection (a). Those payments shall be made by
2the Comptroller according to the date on which the debt first
3became delinquent, with the oldest debts to be paid first.
4    (c) The State Fiscal Responsibility Fund is not subject to
5sweeps, administrative charges, or chargebacks, including, but
6not limited to, those authorized under Section 8h of the State
7Finance Act, or any other fiscal or budgetary maneuver that
8would in any way result in the transfer of any funds from the
9State Fiscal Responsibility Fund to any other fund of this
10State.
 
11    (30 ILCS 330/12)  (from Ch. 127, par. 662)
12    Sec. 12. Allocation of Proceeds from Sale of Bonds.
13    (a) Proceeds from the sale of Bonds, authorized by Section
143 of this Act, shall be deposited in the separate fund known as
15the Capital Development Fund.
16    (b) Proceeds from the sale of Bonds, authorized by
17paragraph (a) of Section 4 of this Act, shall be deposited in
18the separate fund known as the Transportation Bond, Series A
19Fund.
20    (c) Proceeds from the sale of Bonds, authorized by
21paragraphs (b) and (c) of Section 4 of this Act, shall be
22deposited in the separate fund known as the Transportation
23Bond, Series B Fund.
24    (c-1) Proceeds from the sale of Bonds, authorized by
25paragraph (d) of Section 4 of this Act, shall be deposited into

 

 

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1the Transportation Bond Series D Fund, which is hereby created.
2    (d) Proceeds from the sale of Bonds, authorized by Section
35 of this Act, shall be deposited in the separate fund known as
4the School Construction Fund.
5    (e) Proceeds from the sale of Bonds, authorized by Section
66 of this Act, shall be deposited in the separate fund known as
7the Anti-Pollution Fund.
8    (f) Proceeds from the sale of Bonds, authorized by Section
97 of this Act, shall be deposited in the separate fund known as
10the Coal Development Fund.
11    (f-2) Proceeds from the sale of Bonds, authorized by
12Section 7.2 of this Act, shall be deposited as set forth in
13Section 7.2.
14    (f-5) Proceeds from the sale of Bonds, authorized by
15Section 7.5 of this Act, shall be deposited as set forth in
16Section 7.5.
17    (f-6) Proceeds from the sale of Bonds authorized by Section
187.6 of this Act shall be deposited as set forth in Section 7.6.
19    (g) Proceeds from the sale of Bonds, authorized by Section
208 of this Act, shall be deposited in the Capital Development
21Fund.
22    (h) Subsequent to the issuance of any Bonds for the
23purposes described in Sections 2 through 8 of this Act, the
24Governor and the Director of the Governor's Office of
25Management and Budget may provide for the reallocation of
26unspent proceeds of such Bonds to any other purposes authorized

 

 

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1under said Sections of this Act, subject to the limitations on
2aggregate principal amounts contained therein. Upon any such
3reallocation, such unspent proceeds shall be transferred to the
4appropriate funds as determined by reference to paragraphs (a)
5through (g) of this Section.
6(Source: P.A. 96-36, eff. 7-13-09.)
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.